HANNOVER, Germany (July 27)—ContiTech A.G. is discussing selling its ContiTech Sealing Systems business unit to a private equity group that owns SG Sealing Ltd., the former SaarGummi automotive profiles and rubber molding company.
The potential buyer, Special Situations Venture Partners Fund, bought control of SaarGummi in 2004 from RAG Saarberg, and earlier orchestrated the sale of the firm's Canadian and Mexican assets to GDX Automotive Inc.
Special Situations is a fund advised by Munich-based Orlando Management GmbH, a spokesman for which said ContiTech "desperately wants to sell the profiles business." Continental A.G., ContiTech's parent, has long struggled to make this unit effective, and has made no secret of its willingness to sell the business.
ContiTech Sealing Systems employs 1,300 at plants in Slovakia, Germany and Spain, and last year posted sales of $94.4 million, a rise of 14 percent over the previous year, Conti said.